Natural Gas Investment Soars as Oil Spending Slumps Amid Middle East Disruptions
The International Energy Agency (IEA) has reported that global investment in natural gas projects is expected to reach a 10-year high of $330 billion this year, up by more than 10% from last year. This growth is largely driven by the expansion of liquefied natural gas (LNG) projects in the US.
Meanwhile, upstream oil spending is forecasted to decline for the third consecutive year due to disruptions in the Middle East caused by the ongoing Iran war. The conflict has halted tanker traffic through the Strait of Hormuz and resulted in production stoppages across the region.
The IEA's World Energy Investment 2026 report highlights that companies are shifting their investment strategies to diversify trade routes and energy sources, with a focus on renewable energy, LNG, and coal. Fatih Birol, IEA Director, stated that 'we are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources.'